Correlation Between Nano X and Stryker

Can any of the company-specific risk be diversified away by investing in both Nano X and Stryker at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nano X and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nano X Imaging and Stryker, you can compare the effects of market volatilities on Nano X and Stryker and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nano X with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano X and Stryker.

Diversification Opportunities for Nano X and Stryker

0.26

Correlation Coefficient

Nano X  Stryker

Modest diversification

The 3 months correlation between Nano and Stryker is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nano X Imaging and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and Nano X is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nano X Imaging are associated (or correlated) with Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of Nano X i.e., Nano X and Stryker go up and down completely randomly.

Pair Corralation between Nano X and Stryker

Given the investment horizon of 90 days Nano X is expected to generate 1.67 times less return on investment than Stryker. In addition to that, Nano X is 3.76 times more volatile than Stryker. It trades about 0.02 of its total potential returns per unit of risk. Stryker is currently generating about 0.14 per unit of volatility. If you would invest  35,721  in Stryker on September 5, 2024 and sell it today you would earn a total of  3,376  from holding Stryker or generate 9.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Nano X Imaging  vs.  Stryker

Nano X Imaging

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nano X Imaging are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Nano X is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Stryker

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stryker are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Stryker may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nano X and Stryker

The main advantage of trading using opposite Nano X and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano X position performs unexpectedly, Stryker can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stryker will offset losses from the drop in Stryker's long position.

The idea behind Nano X Imaging and Stryker pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.